Have you ever wondered whether or not you should take your company public. There are many reasons for and against doing so. In this article, I’m going to share with you the reasons why I think you should consider taking your business public.
First off, management in publicly held companies is generally compensated at a higher level than management of private companies. Think about this one – your company obtains increased prestige and visibility.
Also, by going public, the company will improve its financial condition by obtaining outside money. Company stock in the form of stock options can be offered to employees and contractors as a meaningful form of incentive compensation.
The public market for the company’s shares provides an irrefutable valuation of the company on a daily basis. Shareholders of the company also benefit from holding shares that are, subject to certain restrictions, freely marketable and usable as collateral for loans.
Shares that are publicly traded generally command higher prices than shares that are not publicly traded. Shareholders are also able to diversify their investment portfolios, due to the increased marketability of their shares.
Management personnel upgrade their experience and employability by having served in responsible executive positions in a publicly held company. Just think about it. The Stock in the company can be used in part to finance acquisitions of other companies (i.e. part of the purchase price can be paid in stock).
These aren’t all of the reasons to take your company public, but it should be enough to at least consider it.
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When you need legal help to take your business public, please call Ascent Law for your free consultation (801) 676-5506. We want to help you.
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West Jordan, Utah
84088 United States
Telephone: (801) 676-5506